The current age requires people to make an instant decision and take quick action. Often we need to be in another city in two hours, in an hour to provide a report or presentation, in ten minutes to buy a suddenly needed item. And just as there is always no free time, there is not enough money for all purchases. In this case, processing a loan on the day of applying to https://creditonline365.com.ua/kredit-v-den- obrasheniya .
Who issues loans?
Today, even large banks have switched to accelerated procedures for checking future borrowers. Especially if they are recipients of salaries or benefits for cards and accounts of this bank, or have an excellent credit history and have taken a loan from this organization more than once. In this case, loan approval will take place within a few hours.
In addition to banks, there are microfinance organizations (MFOs) that have the right to issue loans to individuals.
Differences in obtaining loans
There are several differences in the conditions for obtaining borrowed funds from banks and MFIs:
- The amount of a loan in a bank can be significantly larger than in organizations engaged in microcredit.
- The term of the loan, issued at the bank, is chosen by the loaned person, based on his financial capabilities. In MFOs, loans are issued for a short period, usually from several days to several months.
- The interest rate on bank loans is also lower. Accordingly, the monthly payment is also a smaller amount.
- Possibilities of early order are realized to a greater extent by banks than by MFIs.
- To obtain a loan from the bank, the borrower will most likely need to provide certificates of the place of work and the amount of income. Wait until the assessment of the possibility of loan repayment and credit history is completed. MFOs do not have such a delay, many of them issue loans only with passports and funds are transferred almost immediately.
- Banks try not to issue funds to borrowers with a negative history of loan repayment, as well as to people without a permanent job or with a low level of income. Microfinance organizations provide their money to everyone.
Thus, getting a loan from a bank is much more profitable than from a microfinance organization. However, there are situations in which money is needed urgently or it is not possible to collect the required certificates. In this case, MFIs will help. And large overpayments of interest can be avoided if you take a small amount for a very short period.
